The relationship of service climate, employee commitment, and life satifaction in banking industry in vietnam

i UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Vuong Thi Thanh Binh THE RELATIONSHIP OF SERVICE CLIMATE, EMPLOYEE COMMITMENT, AND LIFE SATISFACTION IN THE BANKING INDUSTRY IN VIETNAM MASTER OF BUSINESS (Honours) Ho Chi Minh City – Year 2014 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Vuong Thi Thanh Binh THE RELATIONSHIP OF SERVICE CLIMATE, EMPLOYEE COMMITMENT, AND LIFE SATISFACTION IN THE BANKING INDUSTRY IN VIETNAM ID: 22120119 MASTER OF BUSINESS (Honours) SUPERVISOR: Dr NGUYEN THI MAI TRANG Ho Chi Minh City – Year 2014 i ACKNOWLEDGEMENT Firstly, I would like to express my heartfelt gratitude to my supervisor Dr Nguyen Thi Mai Trang for her professional guidance, enthusiastic support, valuable advices and instructions as well as the encouragement that I was received from her during the time of doing my research Secondly, I would like to express my deep gratefulness to Professor Nguyen Dong Phong, Professor Nguyen Dinh Tho and Dr Tran Ha Minh Quan for their precious time as the members of ISB Research Committee which gave me some useful comments and meaningful suggestions All of their comments and suggestions were contributed importantly in my completion of this research Thirdly, I would like to express my sincere thanks to my professors in International Business School (ISB) – University of Economics Ho Chi Minh City for all the knowledge which I were received in the past two-year master course Finally, I would like to say thank you to my classmates in ISB for their support during the time I studied and wrote the thesis Moreover, my truly thanks are also sent to my workmates as well as all people who joined in my survey and gave the valuable opinions for my research ii ABSTRACT This study examines the roles of service climate through its factors: customer orientation, managerial support, and work facilitation affecting on employee commitment Based on employee commitment created from service climate, it also evaluates the effect of employee commitment on life satisfaction of employees in the banking industry in Vietnam The test processed in a sample of 140 banking staffs in Ho Chi Minh City and Binh Duong province Using a seven-point Likert-type scale to measure data together with some methods of data analysis (Cronbach’s Alpha test, Exploratory factor analysis and Multiple regression analysis), the findings confirm that working environment included managerial support merged with work facilitation has the positive effect on employee commitment From that result, employee commitment also has the positive significant effect on life satisfaction Extracted from the findings of this research, in order to receive the commitment from employee, the bank must set up good environment for their staffs such as creating good relationship between the managers especially the direct manager and the employee This is one of the most important conditions to get the employee commitment Besides, the work facilitation included the workmate relationship and facilities, which the bank provides to employee affect on keeping the commitment of employee However, the most important thing in this study is having the commitment in job; the employee in the bank will have the life satisfaction Key words Service climate, Employee commitment, Life satisfaction iii TABLE OF CONTENTS ACKNOWLEDGEMENT i ABSTRACT ii TABLE OF CONTENTS iii LIST OF FIGURES vi LIST OF TABLES vii CHAPTER 1: INTRODUCTION 1.1 Research background 1.2 Research problem 1.3 Research objectives 1.4 Scopes and research methodology of the thesis 1.5 Significance of the study 1.6 The structure of the study CHAPTER 2: LITERATURE REVIEW 2.1 Life satisfaction 2.2Service climate 2.3 Employee commitment 2.4 Service climate and employee commitment 2.5 Employee commitment and life satisfaction 11 2.6 Summary 12 CHAPTER 3: RESEARCH METHODOLOGY 13 3.1 Research process 13 3.2 Measurement scale 16 3.3 Questionnaire design 18 3.3.1Qualitative research 19 3.3.2 Quantitative research 20 3.4 Data collection method 20 3.5 Sampling design 20 3.5.1 Population 20 iv 3.5.2 Sample size 21 3.6 Data analysis method 22 3.6.1 Data code 23 3.6.2 Cronbach’s alpha 23 3.6.3 Exploratory factor analysis (EFA) 23 3.6.4 Multiple regression analysis 24 3.7 Summary 24 CHAPTER 4: DATA ANALYSIS AND DATA RESULTS 25 4.1 Sample characteristics 25 4.2 Data analysis process 27 4.2.1 Scale Validity and Reliability 28 4.2.2 Exploratory Factor Analysis(EFA) 29 4.2.2.1 Exploratory Factor Analysis (EFA) for independent variables 29 4.2.2.2 Exploratory Factor Analysis (EFA) for dependent variables 32 4.2.3 Multiple Regression Analysis 34 4.2.3.1 Multiple Regression analysis to evaluate the effect of customer orientation, working environment on the employee commitment 35 4.2.3.1.1 Correlation analysis 36 4.2.3.1.2 Test of assumptions: 36 4.2.3.1.3 Regression analysis 38 4.2.3.2 Bivariate Regression analysis to evaluate the effect of employee commitment on life satisfaction 39 4.2.3.2.1 Test of assumptions 40 4.2.3.2.2 Regression analysis 40 4.2.3.3 Summary the result of multiple regressions and linking to the situation in banking industry in Vietnam 42 4.3 Summary 43 CHAPTER 5: CONCLUSIONS, IMPLICATIONS, AND LIMITATIONS 45 5.1 Conclusion 45 v 5.2 Managerial implications 46 5.2.1 Customer orientation has not a significant positive effect on employee commitment 46 5.2.2 Working environment has a positive effect on employee commitment 46 5.2.3 Employee commitment has a positive effect on life satisfaction 47 5.3 Limitations and future research 49 References 51 Appendix A: In-depth Interview’ refinement measurement scale 58 Appendix B: Questionnaire (English Version) 61 Appendix C: Total Variance Explained 71 Appendix D:Testing assumptions of multiple linear regression 73 Appendix E:Testing assumptions of simple linear regression 77 vi LIST OF FIGURES Figure 2.1: Research Model 11 Figure 3.1 Research Process 15 Figure 4.1: Adjusted Research Model .34 vii LIST OF TABLES Table 3.1 Measurement scale of the research 17 Table 3.2: The result of collecting questionnaire 22 Table 4.1: Sample Characteristics 27 Table 4.2: Scale validity and Reliability 28 Table 4.3: KMO and Bartlett's Test .29 Table 4.4: Rotated Component Matrix 30 Table 4.5: KMO and Bartlett's Test .32 Table 4.6: Component Matrix 32 Table 4.7: KMO and Bartlett's Test .33 Table 4.8:Component Matrix 33 Table 4.9: Correlations 36 Table 4.10: Model Summary 38 Table 4.11: Anova 39 Table 4.12: Coefficients 39 Table 4.13: Model Summary 40 Table 4.14: Anova 41 Table 4.15: Coefficients 41 Table 4.16: Summary of hypotheses testing result 42 CHAPTER 1: INTRODUCTION 1.1 Research background According to Krau and Oswald, one of the highest human and societal goals is enhancement the quality of life (as cited in Frank and Enkawa, 2009) and life satisfaction is the final goal of the human being Every year, Organization for Economic Co-operation and Development (OECD) does the survey with 36 members including countries, which have the highest income in the world and choose some countries have the happiest life all over the world Beside some ratio to survey such as health, education, environment quality…it also has the ratio of life satisfaction in their survey (Thu Hang, 2014).The large part of the developed countries has the high satisfaction level to their lives and the frequently survey about life satisfaction express that life satisfaction is important in developed country In Vietnam, life satisfaction seems not to be paid attention in the past because Vietnam is still the developing country (Ready and Dinh,2008), so the economy is not strong and rich enough to enjoy the life.Vietnamese still have the quotation that “eating for being full and wearing for being warm” and they not have the concept of life satisfaction.In the past ten years, Vietnam is rarely to survey about life satisfaction in our lives because it is hard to find out the information about life satisfaction of Vietnamese in the magazines or newspapers However, some recent years, life satisfaction starts to be known in the communication media in Vietnam.According to Linh San (2014), Business Insider, a prestige magazine of United States of American(USA) is ranked Vietnam in number 16 of the top 20 the most valuable places to live all over the world In addition to, the newest declaration of Pew, a research center in Washington D.C, say that 60 percentage of Vietnamese has the high life satisfaction just after Mexican and USA (Tra My, 2014).Besides, the survey about the happy level of youth also conducts in Vietnam by Hilton Worldwide, Vietnam is ranked number eleven, and the rank is higher than some 65 - years; > - years; > - years; > years What kind of bank are you working for? State-capital Bank Foreign investment capital Bank Once again, thank you for your co-operation in completing this questionnaire! 66 PHIẾU KHẢO SÁT Kính chào Anh/Chị, tên Vương Thị Thanh Bình, học viên cao học trường Đại học Kinh tế Tp.HCM Tôi nghiên cứu mối quan hệ môi trường dịch vụ mà ngân hàng tạo cho nhân viên làm việc cam kết làm việc nhân viên; từ cam kết làm việc nhân viên mang đến mức độ thoả mãn sống Rất mong Anh/Chị dành khoảng phút để nói lên quan điểm Anh/Chị phát biểu đề cập Phiếu khảo sát Những ý kiến Anh/Chị giúp đóng góp nên thành công nghiên cứu Xin cảm ơn nhiều! Phiếu khảo sát hoàn toàn dựa tinh thần tự nguyện thông tin cá nhân Anh/Chị giữ bí mật hoàn toàn Nếu Anh/Chị có thắc mắc nào, xin vui lòng liên hệ qua địa email: vuongbinh_75@yahoo.com, số điện thoại: +84 918.048.008 I Giải thích nghĩa: Phần giải thích rõ thêm môi trường dịch vụ ngân hàng, cam kết làm việc nhân viên thoả mãn sống Service climate (môi trường dịch vụ) thông điệp tổ chức sử dụng lao động muốn gửi tới cho nhân viên coi có giá trị tổ chức đồng thời đề cập tới thái độ hành vi nhân viên mong đợi khen thưởng tổ chức Môi trường dịch vụ thể qua ba nhân tố (theo nghiên cứu này) là: định hướng khách hàng, hỗ trợ từ cấp quản lý điều kiện làm việc Cam kết làm việc nhân viên mong muốn gắn kết nhân viên tổ chức mà họ làm việc cách cố gắng nỗ lực chăm làm việc thịnh vượng tổ chức Sự thoả mãn sống nhận thức cá nhân, đánh giá chất lượng sống.Đó phản ứng cảm xúc cá nhân sống bao gồm thời gian cho công việc, thời gian rảnh rổi thời gian sau làm việc thể thoả mãn cá nhân sống II Phần trả lời câu hỏi: Xin Anh/Chị cho biết Anh/Chị làm việc Ngân hàng đây? 67 hàng Thương Mại Huanan TPHCM -Mitsubishi TPHCM ệp Phát triển Nông thôn chi nhánh Chợ Lớn Phần thể ý kiến Anh/Chị thoả mãn sống từ cam kết làm việc Anh/Chị thông qua môi trường dịch vụ mà ngân hàng Anh/Chị mang lại Hơi đồng ý Đồng ý Dịch vụ chất lượng cao nhấn mạnh cách tốt để trì khách hàng ngân hàng Ngân hàng xác định rõ sản phẩm hay dịch vụ ngân hàng dựa quan điểm khách hàng 4-Trung dung/ ý kiến 5-Hơi đồng ý đồng ý 3-Hơi không đồng ý 6-Đồng ý 7-Hoàn toàn đồng ý Định hướng khách hàng đồng ý Trung dung 2-Không đồng ý Hoàn toàn Không đồng ý Ngân hàng có quan điểm rõ ràng khách hàng mục tiêu nhu cầu khách hàng 1-Hoàn toàn không đồng ý Hơi không Hoàn toàn không đồng ý Xin cho biết mức độ đồng ý của Anh/Chị với các phát biểu sau bằng cách đánh dấu vào ô tương ứng, với: 68 Ngân hàng trì hiệu việc thông báo đến khách hàng ngân hàng thay đổi gây ảnh hưởng tới khách hàng Chúng thông báo giá trị dịch vụ chất lượng cao mà cung cấp cho khách hàng bên Ngân hàng luôn hồi đáp nhanh chóng đề nghị phản hồi khách hàng Quản lý trưc tiếp ủng hộ tôi có sáng kiến việc làm để nâng cao dịch vụ khách hàng Quản lý trực tiếp khuyến khích cung cấp dịch vụ chất lượng cao cho khách hàng Quản lý hồi đáp yêu cầu xin giúp đỡ dẫn Quản lý cam kết cải thiện chất lượng môi trường dịch vụ làm việc Sự hỗ trợ từ cấp quản lý Điều kiện làm việc Tôi nhận hỗ trợ kịp thời đồng nghiệp để làm tốt công việc Tôi nhận ghi nhận khen thưởng xứng đáng làm việc tốt Tôi có nguồn tài liệu hướng dẫn quan trọng mà cần cho việc cung cấp dịch vụ cho khách hàng Tôi tiếp cận với thông tin sách sản phẩm ngân hàng cần đến công việc Cam kết phục vụ của nhân viên 69 Tôi cảm thấy tương lai gắn chặt với tương lai ngân hàng Tôi cảm thấy vui hi sinh lợi ích cá nhân điều quan trọng cho thịnh vượng ngân hàng Tôi cảm thấy tận tâm với ngân hàng Tôi tự hào nói với người khác phần ngân hàng Sự thoả mãn cuộc sống của nhân viên Theo cách sống gần giống sống lý tưởng Những điều kiện sống tuyệt vời Tôi thoả mãn với sống Cho đến có điều quan trọng mà mong đợi sống Nếu sống lại lần nữa, muốn sống sống III Thông tin cá nhân Anh/Chị vui lòng cung cấp số thông tin sau để phục vụ cho việc phân loại so sánh nhóm đối tượng khảo sát Giới tính ữ Nhóm tuổi ến 25; ến 30; ến 40; ến 50; Thu nhập (TN) trung bình tháng (1.000.000vnđ/tháng) Anh/Chị làm việc Phòng ngân hàng? 70 ịch khách hàng (Bộ phận Ngân quỹ, Chuyển khoản, Thanh toán quốc tế) ệ khách hàng (Marketing Dept.) ự (Human Resource and Administration Dept.) ốn (Treasury Dept.) Anh/Chị làm việc năm ngân hàng? -3 năm; - năm; - Ngân hàng Anh/Chị làm việc là: ớc ốn đầu tư Nước Xin chân thành cảm ơn hợp tác Anh/Chị! 71 Appendix C: Total Variance Explained Total Variance Explained of EFA test for independent variables Total Variance Explained Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings % of Cumulative % of Cumulative % of Cumulative Component Total Variance % Total Variance % Total Variance % 10 11 12 13 14 7.450 1.345 868 792 612 546 447 402 340 290 284 267 235 123 53.218 9.604 6.201 5.660 4.374 3.899 3.189 2.871 2.425 2.072 2.026 1.909 1.675 876 53.218 7.450 62.822 1.345 69.022 74.682 79.056 82.955 86.145 89.016 91.441 93.513 95.540 97.449 99.124 100.000 53.218 9.604 53.218 5.215 62.822 3.580 37.247 25.575 37.247 62.822 Extraction Method: Principal Component Analysis Total Variance Explained of EFA test for employee commitment Total Variance Explained Initial Eigenvalues % of Cumulative Component Total Variance % 3.130 78.256 78.256 407 10.181 88.437 286 7.162 95.599 176 4.401 100.000 Extraction Method: Principal Component Analysis Extraction Sums of Squared Loadings % of Cumulative Total Variance % 3.130 78.256 78.256 Total Variance Explained of EFA test for life satisfaction 72 Total Variance Explained Initial Eigenvalues Extraction Sums of Squared Loadings % of Cumulative % of Cumulative Component Total Variance % Total Variance % 3.670 73.398 73.398 3.670 73.398 73.398 543 10.861 84.259 361 7.230 91.489 221 4.428 95.916 204 4.084 100.000 Extraction Method: Principal Component Analysis 73 Appendix D:Testing assumptions of multiple linear regression 1).Assumption of no significant outliers or influential points: Casewise Diagnosticsa Std Predicted Case Number Residual EC Value Residual 65 -5.438 4.00 23.8230 -19.82304 a Dependent Variable: EC Casewise Diagnosticsa Std Predicted Case Number Residual EC Value Residual 57 -3.148 15.00 25.1687 -10.16874 a Dependent Variable: EC 2).Assumption of a linear relationship between the predictor variables (WE, CO) and the dependent variable (EC): 74 3).Assumption of homoscedasticity of residuals: 75 4).Assumption of no multicollinearity: Coefficientsa Unstandardized Standardized Coefficients Coefficients Model B Std Error Beta (Constant) -2.787 1.521 CO 012 075 011 WE 469 040 819 a Dependent Variable: EC 5).Assumption of normality of the residuals: t -1.833 159 11.713 Sig .069 874 000 Collinearity Statistics Tolerance VIF 483 483 2.070 2.070 76 77 Appendix E:Testing assumptions of simple linear regression 1).Assumption of no significant outliers: Casewise Diagnosticsa Case Number Std Residual 58 -3.241 LS 11.00 Predicted Value 25.8983 Residual -14.89831 a Dependent Variable: LS 2).Assumption of linearity between independent variable (EC) and dependent variable (LS): 78 3).Assumption of homoscedasticity: 4).Assumption of normality of errors (residuals): 79 ... satisfaction of employee in the banking industry in Vietnam In specific, this research has the purpose of investigating: The effect of customer orientation on the employee commitment in the banking industry. .. industry The effect of managerial support on the employee commitment in the banking industry The effect of work facilitation on the employee commitment in the banking industry Under the effect of service. .. out the research about life satisfaction of employee in service sections, especially the banking industry in Vietnam In terms of previous research, related to banking industry in Vietnam, there